Health­South re­cap­i­tal­izes en­tire bal­ance sheet

Modern Healthcare - - Late News -

In­pa­tient rehabilitation provider Health­South Corp., Birm­ing­ham, Ala., has re­cap­i­tal­ized its en­tire bal­ance sheet through the re­pay­ment of $743 mil­lion in pre­vi­ous term loans and the ex­ten­sion of a new $500 mil­lion credit fa­cil­ity, ac­cord­ing to a news re­lease. “This $500 mil­lion re­volv­ing credit fa­cil­ity, to­gether with the $525 mil­lion of se­nior notes we re­cently is­sued, have al­lowed Health­South to com­plete a com­pre­hen­sive re­cap­i­tal­iza­tion of our bal­ance sheet re­sult­ing in re­duced re­fi­nanc­ing risks and en­hanced flex­i­bil­ity,” said Health­South Chief Fi­nan­cial Of­fi­cer Doug Coltharp, ac­cord­ing to the re­lease. Un­der terms of its pre­vi­ous agree­ments, Health­South ter­mi­nated a $400 mil­lion se­cured re­volv­ing credit fa­cil­ity and a $60 mil­lion syn­thetic fa­cil­ity, putting in place a newly amended credit agree­ment for up to $500 mil­lion at a rate of Li­bor plus 3.5%, ma­tur­ing in Oc­to­ber 2015. Health­South used $100 mil­lion from its new re­volv­ing line of credit, plus $128 mil­lion in avail­able cash, and net pro­ceeds from the $525 mil­lion in new se­nior notes to pay off pre­vi­ous $743 mil­lion in com­pany debt, ac­cord­ing to the re­lease.

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